• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Articles
  • News
  • Events
  • Advertize
  • Jobs
  • Courses
  • Contact
  • (0)
  • LoginRegister
    • Facebook
    • LinkedIn
    • RSS
      Articles
      News
      Events
      Job Posts
    • Twitter
Datafloq

Datafloq

Data and Technology Insights

  • Categories
    • Big Data
    • Blockchain
    • Cloud
    • Internet Of Things
    • Metaverse
    • Robotics
    • Cybersecurity
    • Startups
    • Strategy
    • Technical
  • Big Data
  • Blockchain
  • Cloud
  • Metaverse
  • Internet Of Things
  • Robotics
  • Cybersecurity
  • Startups
  • Strategy
  • Technical

Does Data Validation Help E-Commerce Players Succeed?

Muhammad Akheel / 5 min read.
April 13, 2021
Datafloq AI Score
×

Datafloq AI Score: 80.33

Datafloq enables anyone to contribute articles, but we value high-quality content. This means that we do not accept SEO link building content, spammy articles, clickbait, articles written by bots and especially not misinformation. Therefore, we have developed an AI, built using multiple built open-source and proprietary tools to instantly define whether an article is written by a human or a bot and determine the level of bias, objectivity, whether it is fact-based or not, sentiment and overall quality.

Articles published on Datafloq need to have a minimum AI score of 60% and we provide this graph to give more detailed information on how we rate this article. Please note that this is a work in progress and if you have any suggestions, feel free to contact us.

floq.to/TQMRn

In today’s world, many businesses prioritize building an online presence over opening a brick-and-mortar retail outlet. Nasdaq estimates that by 2040, 95% of all purchases will be made online through e-commerce websites and applications.

Everything from office stationery to gold jewellery is available online. Given the many advantages of the online world, one would assume that all e-commerce players are profitable. Despite its market presence, even players like Amazon claim to be facing losses in the Indian market. Thus, e-commerce players must constantly find new ways to reduce costs and increase revenue while keeping their customers satisfied.

Is there a solution? Yes there and it is data validation.

What Exactly Is Data Validation?

Businesses get their data from many different sources customers enter details in web forms when creating accounts, invoices from the retail outlets, entries by customer service representatives, etc. Most of this data is entered manually and hence subject to human error. Businesses lose as much as $3.1 trillion each year only because of poor data.

Data validation involves comparing the information entered against that available in reliable third-party databases. For example, when a customer enters his street address, this may be compared to the address saved in the voter records. If the address does not match, the entry may be flagged.

If it is incomplete, information from the voter records may be taken to complete the entry. Data validation helps ensure that customer records are accurate, complete and timely. It also helps de-duplicate files and creates singular, comprehensive customer profiles.

How Does Data Validation Affect Costs?

Improved Last-Mile Delivery

To see success, businesses must find a way to minimize their costs without compromising on the product or service quality. Costs such as those involved in picking up returns, or orders that cannot reach the customer because of errors in the address can be minimized by validating data.

Using address verification software, you can ensure that the addresses orders are being shipped to are correct, complete and deliverable. For example, a customer may have forgotten to enter the floor number. Such details can be added when validating the customer’s address data. Without them, the delivery agent may have trouble reaching the customer and orders may go undelivered affecting costs and customer satisfaction.

Fraud Prevention

Validation also protects companies from fraud. A report predicts that by 2023, Card-Not-Present fraud will increase by 14% and the expected losses for retailers could be as high as $130 billion! This is a cost that can be easily minimized by verifying customer identities.

This involves authenticating the customer’s identity by verifying names, phone numbers, emails, addresses, etc. Identity verification doesn’t just keep fraudsters away but also helps businesses comply with KYC and AML regulations. In turn, this lowers the risk of having to pay fines and penalties.


Interested in what the future will bring? Download our 2023 Technology Trends eBook for free.

Consent

Can Data Validation Increase Revenue?

Improved Marketing ROI

Along with minimizing costs, businesses must also work on increasing their revenue. Data validation plays a key role in improving marketing ROI. For example, email marketing is considered budget-friendly and low cost. But, sending emails out to the wrong addresses can be a waste of resources as the emails bounce back and customers don’t get the company‘s message.

Similarly, cold calling is one of the most common ways for businesses to reach out to potential customers. But having the wrong numbers in your database can cost you time, effort and money. By validating data, companies can ensure that the contact details they have on file are correct and thus prevent this type of resource wastage.

Better Audience Segmentation

Validating data also makes it reliable and helps segment the audience correctly. For marketing tools like emailer campaigns to be effective, audience segmentation is key. So, when you’re designing monthly emailers, you could send email a promoting one type of product to customers in one location and email B promoting another type of product to customers in another location. This makes the emails relevant to your customers and increases the chances of them making a purchase and in turn, increasing your revenue.

Data Validation And Customer Satisfaction

Holistic Customer Profile

The trouble with having duplicate records is not just an inflated database but also a fragmented view of the customer. Let’s say a customer signed in to the website and app with different names but the same email address and thus created two records.

The customer added a product to their cart on the website but didn’t complete the purchase. Later, she ordered the product through the app. Because the company has duplicate records, it sends reminder emails to the customer to complete the order on the website. Such emails can be frustrating for the customer and affect their loyalty to the brand. By de-duplicating records, businesses can avoid such situations.

Personalized Service

Validating customer data goes a long way in improving the way you personalize the customer’s experience. Did you know that 52% of B2C buyers say they’re likely to switch to competitor brands if they don’t receive personalized communication?

Businesses that want to retain customers can no longer afford to send emails addressed to sir/madam or misspell the customer’s name. With data validation, you can not only get to know the correct way to address the customer and get assured means of communicating with them but you also get reliable data from which you can make inferences about the types of products and services they may need. For example, grocery retailers could send targeted advertisements for organic food to customers living in affluent neighborhoods.

Data Validation- The Route Ahead

Data validation has numerous advantages and can give e-commerce companies an edge over the competition in terms of customer satisfaction as well as revenue. Whether your company is just starting out or an established multi-national, data validation is critical to maintaining a reliable customer database.

The good news is that there are a number of tools that can help with the process, after all, data verification is not a one-time exercise. In addition to validating data when it enters the database, all records within the database must be regularly verified to prevent data decay and maintain data quality standards.

Categories: Strategy
Tags: data quality, ecommerce, fraud, marketing, retail

About Muhammad Akheel

Responsible for developing, executing and delivering the company's digital/online marketing strategy, planning and budget to include online, new media, and web to drive the business forwards through key marketing channels. Works at www.Melissa.com. Passionate blogger and enjoys writing about data quality, KYC, AML, BLOCK Chain, crypto, Big Data, and AI.

Primary Sidebar

E-mail Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Publish
AN Article
Submit
a press release
List
AN Event
Create
A Job Post

Related Articles

The Advantages of IT Staff Augmentation Over Traditional Hiring

May 4, 2023 By Mukesh Ram

The State of Digital Asset Management in 2023

May 3, 2023 By pimcoremkt

Test Data Management – Implementation Challenges and Tools Available

May 1, 2023 By yash.mehta262

Related Jobs

  • Software Engineer | South Yorkshire, GB - February 07, 2023
  • Software Engineer with C# .net Investment House | London, GB - February 07, 2023
  • Senior Java Developer | London, GB - February 07, 2023
  • Software Engineer – Growing Digital Media Company | London, GB - February 07, 2023
  • LBG Returners – Senior Data Analyst | Chester Moor, GB - February 07, 2023
More Jobs

Tags

AI Amazon analysis analytics application Artificial Intelligence BI Big Data business China Cloud Companies company crypto customers Data design development digital engineer engineering environment experience future Google+ government Group health information learning machine learning mobile news public research security services share skills social social media software solutions strategy technology

Related Events

  • 6th Middle East Banking AI & Analytics Summit 2023 | Riyadh, Saudi Arabia - May 10, 2023
  • Data Science Salon NYC: AI & Machine Learning in Finance & Technology | The Theater Center - December 7, 2022
  • Big Data LDN 2023 | Olympia London - September 20, 2023
More events

Related Online Courses

  • Oracle Cloud Data Management Foundations Workshop
  • Data Science at Scale
  • Statistics with Python
More courses

Footer


Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Recent

  • 5 Reasons Why Modern Data Integration Gives You a Competitive Advantage
  • 5 Most Common Database Structures for Small Businesses
  • 6 Ways to Reduce IT Costs Through Observability
  • How is Big Data Analytics Used in Business? These 5 Use Cases Share Valuable Insights
  • How Realistic Are Self-Driving Cars?

Search

Tags

AI Amazon analysis analytics application Artificial Intelligence BI Big Data business China Cloud Companies company crypto customers Data design development digital engineer engineering environment experience future Google+ government Group health information learning machine learning mobile news public research security services share skills social social media software solutions strategy technology

Copyright © 2023 Datafloq
HTML Sitemap| Privacy| Terms| Cookies

  • Facebook
  • Twitter
  • LinkedIn
  • WhatsApp

In order to optimize the website and to continuously improve Datafloq, we use cookies. For more information click here.

settings

Dear visitor,
Thank you for visiting Datafloq. If you find our content interesting, please subscribe to our weekly newsletter:

Did you know that you can publish job posts for free on Datafloq? You can start immediately and find the best candidates for free! Click here to get started.

Not Now Subscribe

Thanks for visiting Datafloq
If you enjoyed our content on emerging technologies, why not subscribe to our weekly newsletter to receive the latest news straight into your mailbox?

Subscribe

No thanks

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Marketing cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!